In the 1940s and 50s, this was a very popular getaway for those in northern Virginia and D.C. Offshore gambling, legal in Maryland but not in Virginia, earned it the name "Las Vegas of the Potomac." When the laws were changed in 1959, Colonial Beach began its decline.
But today, it's enjoying a resurgence of popularity as the beach and boardwalk are filled with vacationers.
Another interesting note: Alexander Graham Bell's summer home was here. Today it operates as a B & B.